Mitsubishi is reviewing business plans for three Japanese offshore wind power projects following macroeconomic changes, including the depreciation of the yen, rising interest rates and tight supply chains.
The business environment for offshore wind power has "significantly changed and is continuing to change worldwide” in the wake of the COVID-19 pandemic and Russia’s war in Ukraine, according to a statement on Monday. Mitsubishi is developing the projects as part of a consortium through its subsidiary.
Soaring costs in recent years have upended the investment plans of offshore wind developers globally. Denmark’s Orsted A/S recorded a $1.7 billion hit on its 2024 earnings on higher building costs, while BP merged its business with Japan’s Jera to cut exposure to the troubled sector.
The Mitsubishi-led consortium won the three projects in Japan’s inaugural auction for bottom-fixed offshore wind installations in 2021. The company said on Monday that progress had been made on development activities for those projects.
Resource-poor Japan is seeking to have 10 gigawatts of offshore wind power capacity allocation by 2030, increasing to 30-to-45 gigawatts by 2040, as the nation aims to expand its renewable energy mix and curb emissions.
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